Ángel Ubide, former Institute senior fellow, presented the main findings of his new book published by PIIE, The Paradox of Risk: Leaving the Monetary Policy Comfort Zone, on October 19, 2017.
Ubide argues that most Western economic policymakers have dogmatically adhered to the conservative consensus of combating inflation, reducing public deficits, and discouraging risky behavior by investors. That mindset made them hesitate to take action when the global financial crisis erupted in 2007–08. European central bankers in particular worried excessively about the risks and possible losses from their policy responses. In his new book, Ubide establishes that central banks’ fear of inflation and activism has not only hampered their efforts to revive global prosperity but made the recovery weaker. He calls on world leaders to abandon old myths and learn the lessons from the financial crisis and its sluggish aftermath.
Ubide is currently managing director at Goldman Sachs’ Private Wealth Management group, which he joined in 2016. From 2009 to 2016, he was a senior fellow at the Peterson Institute, writing on monetary policy, European policy issues, banking, and exchange rates. He was previously with Tudor Investment Corporation (2001–12), D.E. Shaw Group (2012–14), and the International Monetary Fund (1996–2001).